Emerging Australian gold producer and developer Capricorn Metals has successfully raised $12.6 million through a strongly supported share placement to fund the development of its flagship Karlawinda Gold Project in WA.
“The Placement, comprising 97.2 million fully paid ordinary shares, was undertaken to institutional and sophisticated investors at an issue price of 13 cents per share. This represents an 8.5% discount to the 5-day volume weighted average price (VWAP) of 14.2 cents per share,” the company said in a statement to the ASX.
“The funds raised will significantly strengthen Capricorn’s balance sheet, putting it in a strong position to fast-track the development of the Karlawinda Project, located 65km south-east of Newman in WA, and realise its objective of becoming a significant new Australian gold producer.”
Capricorn’s Managing Director Peter Thompson said the proceeds of the raising will be used to complete the current Scoping Study, as well as to fast-track resource/reserve definition drilling and to test a number of newly identified gold targets in close proximity of the existing resources.
“This is a great result which reflects the quality if the asset we are developing at Karlawinda, the experience and capability of the team we have put in place, and the strength of our strategy – which is to become a low-cost, high-margin gold producer,” Mr Thompson added.
“I would like to take this opportunity to thank all of the investors who participated in this raising, including several of our existing cornerstone shareholders, and to welcome the new shareholders as we embark on this next important stage of the Company’s development.”
